The Shareholders Association is scathing of a move by Contact Energy to double the pool of directors' fees to $1.5 million, saying the current calibre of the board is not worth it.
The fees were last raised in 2004. Contact argues rates are now considerably below market rates and an increase is needed to attract and retain the best talent in the boardroom.
Separately, controversial independent directors, Phil Pryke and John Milne, who along with Tim Saunders faced an investor backlash in 2006, are up for re-election.
The vote on both matters will be a formality, as the company's 51% owner, Origin Energy has received stock exchange approval to let it vote in favour.
However, Shareholders Association chairman Bruce Sheppard says Contact's other investors will not be happy. He says Contact is a good asset that is moderately well run, and its directors are well paid already.
Mr Sheppard also says Mr Pryke does not have the respect of shareholders.
Contact's annual meeting is next month.
